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Transcript of CEAT Annual Report 2010 11
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vroom!
CORPORATE OVERVIEW
02 Company Snapshot__________08 Excelleration____________ 14 Financial Highlights____________
16 Operational Breakthroughs of 2010-11____________
Forward-looking statements
In this Annual Report, we have disclosed orward-looking inormation to enable investors to comprehend our prospects and take investmentdecisions. This report and other statements - written and oral that we periodically make contain orward-looking statements that set outanticipated results based on the managements plans and assumptions. We have tried wherever possible to identiy such statements by usingwords such as anticipate, estimate, expects, projects, intends, plans, believes, and words o similar substance in connection with any
discussion o uture perormance.
We cannot guarantee that these orward-looking statements will be realised, although we believe we have been prudent in assumptions. Theachievements o results are subject to risks, uncertainties, and even inaccurate assumptions. Should known or unknown risks or uncertaintiesmaterialise, or should underlying assumptions prove inaccurate, actual results could vary materially rom those anticipated, estimated, orprojected. Readers should keep this in mind. We undertake no obligation to publicly update any orward-looking statements, whether as a resulto new inormation, uture events or otherwise.
STRATEGIC REVIEW
17 Strategies to Stay Ahead__________18 Meeting Customer Demands____________ 20 Innovation in Services____________
22 Branding Strategies____________ 24 Corporate Social Responsibilities____________
STATUTORY REPORTS
26 Corporate Information__________ 27 Notice__________ 30 Directors Report__________
40 Management Discussion and Analysis____________ 52 Corporate Governance Report__________
FINANCIAL STATEMENTS
69Standalone Financials__________103Consolidated Financials____________
Attendance Slip and Proxy Form are enclosed at the end o this report.
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CORPORATE OVERVIEW Topic Heading Dummy Topic Heading Dummy Copy As Heading The Copy Is Dummy Here
1Annual Report 2010-11
ExcellerationCan excellence and acceleration converge?
Can technology and human ingenuity extend the limits o the possible?
Can collective dynamism and youthulness drive momentum in business and lie?
At CEAT, the answer is an emphatic yes.Welcome to perpetual motion.
For nearly ive decades, we have traversed
challenging roads to expand our presence in thenational and international markets, on the strength
o our product innovation and deep customercentricity. Our customer delivery model revolves
around a uturistic ormula: excelleration. Putting itsimply: accelerated delivery o excellence.
Product innovation, at CEAT, starts with a deep
customer insight and a keen understanding o theglobal markets. This is supported by a culture that
encourages employees to respond nimbly withnew ideas to solve varied customer challenges. As
perectionists, we value the role o technological
brilliance and innovation in our industry; concurrently, we have a deep
regard or teamwork and stamina.
We have been all-weather riends o our customers across multiple roads;
and yet road riction and atigue has not corroded our youthul conidenceand dynamism to grow. We are unrelenting in our growth approach:
gaining access to new customers and markets globally; enriching productsportolio; enhancing quality benchmarks through investments in research
and development; and extending our brand recall and respect in all sphereso lie.
Today, CEAT is more than a global brand or tyres, tubes and laps. Itrepresents the courage and conidence o young Indians to help create a
better India and a humane world.
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SnapshotCompany
, the lagship company o the RPG Enterprises, is among Indias leadingtyre manuacturers producing over 10 million tyres annually. We are widening our
visibility nationally and internationally with our wide range o tyres, tubes and laps. TheCEAT brand stands or superior quality and durability, so that our customers can have a
hassle-ree ride, even on the roads less travelled.
2CEAT Limited
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CORPORATE OVERVIEW Company Snapshot Excelleration Financial Highlights Operational Breakthroughs
3Annual Report 2010-11
a snapshot
RPG Enterprisesis one o Indias
leading business groups with a
turnover o ` 18,500 crore (USD
4.16 billion). RPG Enterprises
has a strong presence in
multiple sectors: inrastructure,
power, tyres, retail, inormation
technology, carbon black,
speciality and entertainment.
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VisionTo be amongst the most proitable tyre companies in India by 2016 through: Marketleadership in select categories in India and market leadership in signiicant countries outside India.
4CEAT Limited
Challenger Aspiration-led Integrity Result obsession OpennessCore Values
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10
34
100+
3,500+
5Annual Report 2010-11
Outsourcing units ortyres, tubes and laps
Regional Oices
C&F agents
Dealers
3ManuacturingPlants
presenceNational
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for all
TyresCEAT oers the widest range o tyres to all user segments and manuactures
world-class tyres or all Indian vehicles comprising:
Heavy-duty trucks and buses
Light commercial vehicles (LCV)
Earthmovers
Forklits
Tractors
Trailers
Cars and Jeeps
Motorcycles and scooters
Auto-rickshaws
6CEAT Limited
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7Annual Report 2010-11
Product distribution
Segment-wise
facilitiesManufacturing
Production capacities(tonnes per day)
Volume-wise(%)
Volume-wise(%)
66
14
20
60
11
10
8
4
7
Replacement ExportsOEMFarm
Trucks and Buses
Car/ Jeep
2-3 wheelers
O the Road and Industrial Vehicles
Light Commercial Vehicles
CEAT owns two tyre manuacturing acilities in Maharashtra (Bhandup and Nasik) and has also set up a
greenield radial tyre manuacturing acility at Gujarat (Halol).
CEAT has three manuacturing plants in Sri Lanka in Joint Venture and it also outsources certain amount o
automotive tubes, tyres and laps.
175
60
140
240
2010-11
200
90
170
240
2011-12E
200175
205
240
2012-13E
Bhandup Nasik
Halol Outsourcing
CORPORATE OVERVIEW Company Snapshot Excelleration Financial Highlights Operational Breakthroughs
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8CEAT Limited
Think aheadto even out the odds
CEATs objective is to think ahead o its customers to deliver
better value, even in a resource-scarce environment. As a part
o this strategy, we oten question conventional approaches,think laterally and revisit old strategies.
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9Annual Report 2010-11
Opposed to conventional thinking, micro
ocus sometimes yields mega beneits. We
take a minute look at every aspect o the
organisation or opportunities to get better.
Each and every process and product at CEAT
is approved by appropriate certiication. CEAT
is Indias irst organisation to get the ISO/TS
16949:2002 certiication by the International
Automotive Task Force (IATF) and JapanAutomobile Manuacturers Association. This
certiication ensures quality management and
a smooth supply chain, minimising anomalies
and wastage.
CEATs advanced technology leverage and
high-end research and development enhance
the on-road pleasure o end customers.
The tyres are tested or best endurance
and perormance, and are accredited by
the Department o Scientiic and Industrial
Research (DSIR).
For CEAT, customers are more than product
buyers; they are also part o the society we
live and cherish. Our Be Idiotsae campaign
enhances awareness on road saety and helps
create a mass movement against unsae road
conditions created by rash drivers. CEAT bike
tyres with superior grip are positioned as a part
o this pervasive campaign against road idiots.
The Be Idiotsae advertisement was ranked
as the ourth best advertisement by redimail
ater Vodaone, Volkswagen and Cadburys.
Besides, CEAT Cricket rating enjoys wide
acceptance, reinorcing the brand globally.
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10CEAT Limited
In order to enhance visibility signiicantly, the organisation is ocusing on capacity enhancement
o its current manuacturing units in India. Besides, the Halol plant in Gujarat has also commenced
operation. The plants advanced technology will help enhance the production o radial tyres,
which has an immense market potential.
We have also acquired the CEAT brand rom Pirelli & C. SpA or 9 million Euro. The acquisition will
help CEAT enter new markets, such as Latin America, Europe and the US in the radial tyre segment.
Further, it allows CEAT to outsource tyres rom any country under the CEAT brand.
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11Annual Report 2010-11
Acceleration,Sustained
our future strategyOur business approach is to ormulate a easible growth strategy,
consolidate resources and evolve a derisked business model by closely
monitoring internal eiciencies and market actors.
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&
Racing ahead with
strength vigour
12CEAT Limited
We sponsor multiple youth-ocused television programmes (MTV Roadies, MTV Roadies Battle Ground, MTV Stunt
Mania and Khatron Ke Khiladi) to make the brand relevant to Indian Youth, who comprise around 50% o the
population. This diferentiated branding has enabled CEAT to gain enhanced eye share and higher recall in India.
Besides, CEATs long association with cricket has endeared it to a cricket-obsessed nation like India; and even to
the young people o other cricket-loving nations globally.
CEATs dynamism is also relected in its employee proile. The average employee age is around 36 years; and i
we consider the age o trainees it is only 32. Adequate emphasis is laid to the training and development o each
employee in the organisation, and a vibrant culture o continuous learning keeps the proessionals young at heart.
CEAT brand health research in May 2010
Youthul Premium Dynamic
42
28
May10 09
38
23
May10 09
22
39
May10 09
10 cities,1519 sample size
(Brand Score %)
CEAT is all about strength and vigour and this relected in our dierentiated branding,
targeting the young population, who represent Indias driving orce.
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13Annual Report 2010-11
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FinancialHighlights
14CEAT Limited
Total Income(` lacs)
07 08 10 11
2,1
59,2
2.1
5
2,3
52,5
0.1
8
2,4
15,6
1.9
2
2,8
49,6
1.1
2
3,5
29,1
4.5
3
09
PBT(` lacs)
07 08 10 11
60,9
1.8
8
197,3
1.0
4
(37,1
7.2
2)
238,9
9.6
5
33,2
4.1
9
09
EBIDTA(` lacs)
10 11
322,7
1.0
8
145,9
0.2
8
07
1,5
2
,40.6
5
08
287,
24.0
4
58,1
4.3
1
09
PAT(` lacs)
07 08 10 11
39,2
4.8
5
148,6
0.4
4
(16,1
1.1
6)
161,0
4.1
5
22,2
8.3
3
09
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15Annual Report 2010-11
Shareholdersunds (` lacs)
07 08 10 11
378,6
3.7
9
513,2
5.7
3
488,3
8.1
5
628,7
1.4
5
649,1
4.5
2
09
Earnings perShare (`)
07 08 10 11
8.6
0
40.0
6
(4.7
1)
47.0
3
6.5
1
09
Net CurrentAssets (` lacs)
07 08 10 11
56,2
2.1
4
218,4
5.8
0
312,
21.5
5
241,45.4
8
121,11.9
6
09
Dividend(` per Share)
07 08 11
1.8
0
4
0 2
09
CORPORATE OVERVIEW Company Snapshot Excelleration Financial Highlights Operational Breakthroughs
10
4
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16CEAT Limited
breakthroughs of 2010-11OperationalExpanded capacity at the Nasik plant by over
1000 tonnes per monthPiloted the new-age CEAT Shoppe,to enhance the tyre retailing experience
Launched highly eectiveadvertisement campaigns:Gross Rating Point (GRP) o irst campaign is
1000; Cricket World Cup campaign generated
800 GRP; smart leverage o digital platorm
to connect with youth
Enhanced rural visibility and channel
expansion: 750 dealers wereappointed in the rural marketsin the third and ourth quarters o 2010-11
Achieved elevated productivity levels, a
result o organisational initiatives, such as
Total Quality Management inthe entire workorce
Commenced the irst phase o productiono radial tyres at Halol, Gujarat
Acquired the global rights o the CEAT
brand rom Pirelli & C. SpA or 9million Euro (` 55 crore)
Introduced Indias irst tractor tyre, meant
especially or rice ield application
Launched India RoadTransportation Awards, irst oits kind in the Indian automobile industry, to
recognise and honour high-perorming truck
leet and logistics companies or their
innovations
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17Annual Report 2010-11
STRATEGIC REVIEW Strategies to Stay Ahead Meeting Customer Demands Innovation in Services Branding Strategies
New product development is driven by two objectives:
keep pace with competition and improve the existing
product range; and develop innovative products to elevate
industry standards.
CEAT believes in comprehensive innovation,
encompassing products, processes, services,
communications and channels. Thereore, new product
development requires considerable understanding o the
customer requirement and their eedback. The product
managers are trained regularly to understand and
observe the customers, dealers and vendors. Besides,
research agencies, like ACNielson are also involved to
conduct surveys. Critically, a new product development
includes the ollowing processes:
Customer Input
Product development
In-house testing
On-ield testing
Corrections
Commercial production and market introduction
to stay aheadStrategies
New product development
To elevate development of design
capabilities, CEAT uses the above
tools in their R&D Centre
CATIA and Unigraphicssotware or 3D modelling
ABACUS andHypermesh sotware orinite element modelling
PLM to integrate all aspectso the product rom customer
inputs to product perormance
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18CEAT Limited
The moreclosely we seecustomersperspectives,the more likely weare to meet their
demandsCustomer centricity is the main ocus o CEATs
business strategy. Integrating the customers
perspective and insights, CEAT developed the
ollowing products:
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19Annual Report 2010-11
AayushmaanR2-theRicespecialtractorrealtyre:firstofitskindinthecountryCustomerrequirements... Shouldavoidslippageoftractorsinthefield
Shouldnotburnmorefuelinmuddyfieldsduringharvesting
Shouldnotbepiercedandpuncturedbydifferentplantstubslikesugarcane...havebeenaddressedinAayushmaanR2tyres.
Directadvantages
Thetyresdontgetstuckinthewetsoil Thefarmercanpuddlemoreacresatthesametime,thusincreasingproductivity SavesfuelfortractorownerBettercropyield
TruckPROseries
Customerdemands...
Highmileageathighload
Highmileageathighspeed
Nofailurewithsuper-heavyload
...havespearheadedthedevelopment
ofMILE
XLPROandLUGXLPRO
Directadvantages
Highloadcarryingcapacity
Highersurfacecontact
Surviveshighservicecontact
Excellentinitialmileage
Highfuelefficiency
Innovationinmotorcycletyres
Bikingoncityroadscanbeadangerou
saffair,ifwe
encounterjaywalkersandcarelessdr
ivers.CEAT
introducedthepremiumGrippseries
todealwiththe
frequentproblemsfacedbythebikers
onroad.Inthe
currentfiscal,ithascompletedtheGr
ipprangeacross
keysizes.Besides,ithaslaunchedMil
azeandZoom
patternsinselectsizesandaspecialt
yreformud
terrainforHeroHonda.
Directadvantages
Excellentgripandfreerollingoftyre
Excellentwaterpumpingevenwhil
ecornering
Maximumleaningatcornersandsta
bilityat
highspeed
Highgriponwetanddrysurfaces
LCVBulandSeriesCustomerneeds...
Longevity,reliabilityandeconomicprice Shouldnotwearoffearly ShouldtakemaximumtimewithoutburstingSmoothjourney
...havecatalysedthedevelopmentofLUGXLandMILXLRIB
Directadvantages
WonderBeadforhigh-loadcarryingcapacityWidertreadwidthforhighermileage Continuousshoulderribtowithstandheavystrainsatshoulder
ETCsystemtoabsorbshockandprovideasmoothride
STRATEGIC REVIEW Strategies to Stay Ahead Meeting Customer Demands Innovation in Services Branding Strategies
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20CEAT Limited
Innovation in
servicesfor enhancedcustomer engagement
CEAT Tyre Retread Centre
CEAT Hub & CEAT Shoppe
Spiralling rubber prices made it imperative or truck owners to seek new ways to get the
most out o the old tyre. Retreads are signiicantly cheaper than new tyres. CEAT has
developed its own brand o treads to provide high quality retread to the
truck owners through the CEAT Tyre Retread Centres (CTRC).
The CTRCs will be having an agreement with CEAT or retreading o trucks, buses and LCV
tyres or customers. The Pre-cured CEAT Tread Rubber belts as well as the allied materials
Bonding Gum and Black Vulcanising Cement (BVC) will be provided to CTRCs, whereby the
CTRCs will use only CEAT treads and raw materials or tyre retreading.
CEAT is ocusing on a pan-India presence or CTRCs, with an initial target o launching 90
Tyre Retread Centres by the end o FY11-12. In terms o Pre-cured Tread Rubber
(PCTR) volume, it aims to achieve sales o around 140 tonnes by the end o this iscal.
To provide a platorm or direct customer interaction and oer quality products and services,
CEAT has launched a one-stop tyre shop called CEAT HUB (or Truck and LCV tyres)
and CEAT Shoppe (or passenger cars). These retail outlets act as a suitable platorm
to attract new customers, and also exert control over distribution networks.
The number o Hubs has increased to 335 in the current year, compared with 265 in
the previous year. Similarly, the number o CEAT Shoppes is expected to touch 200,
including those in Tier II and Tier III cities.
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21Annual Report 2010-11
CEAT PRO
The Dealer Portal
To empower the leet owners with access o inormation and resources, CEAT launched its
knowledge series CEAT PRO. High level representatives rom logistics, inance,
HR, commercial vehicle and other related sectors address a variety o
issues, such as driver training and shortage, new technologies, controlling credit to manage
business and developing a platorm to charge better rates or minimising acquisition cost.
In the past 20 months, CEAT PRO has covered 58 cities and beneited
4250 transporters, enjoying wide media publicity.
For improved communication between dealers and the Company, CEAT has launched a
web interace on January 1, 2011. A unique user ID and password is provided to each
business partner, enabling irst-hand inormation access o dealers Statement o Accounts with
the Company, their claim status, their invoice-wise sales, and their Credit/ Debit Notes. The
dealer portal also provides updates about discounts, schemes and new product launch details
and alerts on price hikes and roll backs.
STRATEGIC REVIEW Strategies to Stay Ahead Meeting Customer Demands Innovation in Services Branding Strategies
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22CEAT Limited
India Road Transportation Awards
Be Idiotsafe CampaignThe Above The Line (ATL) campaign in bike tyre category had two bursts o 800+ GRPs in the pan India target
group. It has created high impact during the ICC Cricket World Cup, 2011. The digital association with the
campaign engaged 77,000+ ans on acebook and 250,000+ visitors on www.beidiotsae.com website.
It was urther supported by Below The Line (BTL) campaign at Cae Coee Day outlets, hoardings and Point o Sales
deployments.
To recognise the transporters who have contributed immensely to Indias growth story and to set a benchmark
o excellence in the industry, CEAT organises the India Road Transportation Awards. The IRTA 2010 was a
resounding success with direct participation o over 7000 eligible leet owners. It reinorced our
brand visibility and acilitated the sharing o industry knowledge and enhanced customer satisaction.
Brandingstrategies
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23Annual Report 2010-11
CEAT Cricket Rating
CEAT is one o the top ive brands associated with cricket. The CEAT International Cricket Rating System wasormulated with direct intervention o cricketing legends (Clive Llyod, Ian Chappel and Sunil
Gavaskar), and today the CCR is highly respected among the cricket ans globally. Furthermore, tie-up
with Neo or the whole year or Asia Cup, TOI score card and points tally branding during IPL
and T20 World Cup created a strong ootprint or CEAT in the international cricketing space.
Brands associated with Cricket Rating (Brand Recall %)
Redif
Maruti
Idea
ICC
Castrol
11
17
5
24
45
33
STRATEGIC REVIEW Strategies to Stay Ahead Meeting Customer Demands Innovation in Services Branding Strategies
Source: TNS India Private Limited, June 2010
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24CEAT Limited
At RPG Group CSR is not a random list. We embrace responsibility or the Companys actions and encourage
positive impact through core business operations. Our deliberate promotion and inclusion o public interest
seeks to honour the triple bottom line: people, planet and proit. This culture is relected notably at CEAT.
The year-round stakeholder priorities at CEAT cover workplace, community, and environment. Through our social
programmes, we strengthen our ties with the people we touch.
From the various activities CEAT conducted during the last one year, we pick some that relect our values and bear direct
signiicance to the society.
Sustainability or triple bottom line is incomplete
without active eorts to preserve natures
elements and conserve natural resources.
CEAT commemorated World Environment
Day at the Bhandup Plant by distributing
badges, organising art competitions or
employee children, tree plantation and a
screening o the documentary The
Inconvenient Truth. CFL distribution
cells were also set up or employees
so they could switch to energy conserving
illumination at highly subsidised prices.
Spiritedventures
Environment
They say it is always in season or the old
to learn. The trick is to bring home the
learning. CEAT organises workshops,
government certiied training
programmes, and conducts skill-
building sessions.
Workshop by LIC or employees oninancial planning
Skills development or women employees
Government recognised courses or
assistant wiremen and basic electricians to
improve employability
Tailoring classes to empower womenEducati
on
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25Annual Report 2010-11
Healthcare and awareness are constant
initiatives on the CEAT CSR cell calendar.
We organised multiple health check-ups or employees. These included bone
density tests, thyroid examination, eyes and
ENT checks and a bone densitometry camp.
Blood donation and yoga camps were
also organised or employees. Apart rom
these, to create awareness on various aspects
o health, we observed the World Heart
Day to create awareness about cardiac
ailments, World No-Tobacco Day to bring
to ore the ill eects o tobacco, gutkha and
cigarette smoking and World AIDS Day.
CEAT also supports underprivileged
cancer patients with monetary aid, to
which our employees contribute generously.
At CEAT, we believe todays children will
to the line o enterprising endeavours
o tomorrow. We have adopted theGyananubhava Vidyalaya at Karjat.
Through the year, we celebrated
Teachers day, and conducted sessions
on domestic and general saety, pollution
and its control, art o living, yoga and health
and hygiene.
We also celebrated Senior Citizens
day with Runanubandh, a get together
or the elderly o the community where
we had organised entertainment andelicitations or all attendees.
Children o employees and the community
were engaged in an art and crat
workshop during their Diwali break.
Health
Community
Welf
are
STRATEGIC REVIEW Corporate Social Responsibilities
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26CEAT Lte
CopoteInformation
Board o direCtors
R. P. GoEnkAChairman
H. V. GoEnkAVice Chairman
PARAs k. CHowdHARyManaging Direcr
AnAnT VARdHAn GoEnkADep Managing Direcr
VinAy BAnsAL
A. C. CHoksEy
s. doREswAmymAHEsH s. GuPTA
HAiGREVE kHAiTAn
BAnsi s. mEHTA
HARi L. mundRA
k. R. PodAR
audit Committee
HARi L. mundRAChairman
s. doREswAmyMember
mAHEsH s. GuPTAMember
shareholders/investorsGrievanCe Committee
mAHEsH s. GuPTAChairman
PARAs k. CHowdHARyMember
s. doREswAmyMember
Company seCretary
H. n. sinGH RAjPooT
reGistered oiCe
463, Dr. Annie Besan Rad,
Wrli, Mmbai - 400 030.
plants
Village Rad, Bhandp,
Mmbai - 400 078.
82, MIDC, Indsrial Esae,
Sapr, Nasik 422 007.
Village Gae Mvala, Hall,Panchmahal, Gjara 389 350.
leGal advisors
Mlla & Mlla and Craige, Bln & Care
auditors
n. m. RAiji & Co.
reGistrar & share transeraGents
TsR dARAsHAw LimiTEd
6-10, Haji Msa Parawala IndsrialEsae, 20, Dr. E. Mses Rad, Wrli,Mmbai - 400 011.
Bankers
BAnk o BARodA
BAnk o indiA
CoRPoRATion BAnk
Exim BAnk
iCiCi BAnk LimiTEd
indiAn BAnk
indusTRiAL dEVELoPmEnT BAnk oindiA
sTATE BAnk o indiATHE kARnATAkA BAnk LimiTEd
uCo BAnk
yEs BAnk LimiTEd
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StAtutoRy REPoRtS Direcrs Repr Managemen Discssin and Analsis Repr n Crprae Gvernance
27Aal Reprt 2010-11
NotICE is hereb given ha he -secnd Annal General Meeing he Cmpan will be held a Ravindra Naa Mandir,P. L. Deshpande Maharashra Kala Academ, Saani Rad, Prabhadevi, Mmbai - 400 025, n Frida, Ags 26, 2011 a 3.30p.m. ransac he llwing bsiness:
ordinary Business
1. t receive, cnsider and adp he adied Balance Shee as a March 31, 2011 and Pr and Lss Accn r he nancialear ended n ha dae, he Repr he Adirs heren and he Repr he Direcrs.
2. t declare dividend n Eqi shares.
3. t appin a Direcr in place Mr. H. V. Genka wh reires b rain and, being eligible, has ered himsel rre-appinmen.
4. t appin a Direcr in place Mr. S. Dreswam wh reires b rain and, being eligible, has ered himsel rre-appinmen.
5. t appin a Direcr in place Mr. Bansi S. Meha wh reires b rain and, being eligible, has ered himsel rre-appinmen.
6. t appin Messrs N. M. Raiji & C., as Adirs he Cmpan hld ce rm he cnclsin his Annal General
Meeing he cnclsin he nex Annal General Meeing and x heir remnerain.
speCial Business
7. t cnsider and i hgh , pass wih r wih mdicain, he llwing reslin as an ordinar Reslin.
RESoLVED tHAt Mr. Vina Bansal, wh was appined as a Direcr he Cmpan wih eec rm Jl 24, 2009 in hecasal vacanc cased de he demise Mr. M. A. Bakre, and wh hlds ce nder he prvisins Secin 262 he Cmpanies Ac, 1956 p he dae his Annal General Meeing and in respec whm he Cmpan has received anice in wriing rm a member prpsing his candidare r he ce Direcr and wh is eligible r appinmen, beand is hereb appined as Direcr he Cmpan whse erm ce shall be liable reiremen b rain.
notes
a) A member eniled aend and ve is eniled appin a prx aend and ve insead himsel and he prxneed n be a member.
b) the insrmen appining he prx shld, hwever, be depsied a he regisered ce he Cmpan n less hanr-eigh hrs bere he cmmencemen he meeing.
c) Members are reqesed kindl reer he Chaper n Crprae Gvernance Repr in he Annal Repr r he inrmainin respec re-appinmen/appinmen Direcrs, nder Clase 49 he Lising Agreemen. o he Direcrsseeking re-appinmen, nl Mr. H. V. Genka hlds 13,932 eqi shares in he Cmpan.
d) Mr. H. V. Genka is he aher Mr. Anan Vardhan Genka, Dep Managing Direcr he Cmpan and he sn Dr. R.P. Genka, he Chairman he Cmpan. Nne he her Direcrs seeking re-appinmen is relaed an member he Bard Direcrs r an Managemen Persnnel.
notice
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e) the Regiser Members and he Share transer Bks he Cmpan shall be clsed rm Frida, Ags 12, 2011 Frida,Ags 26, 2011 (bh das inclsive).
) Prsan he prvisins Secin 205A he Cmpanies Ac, 1956, dividend r he nancial ear ended March 31,2004, which remained nclaimed r npaid r he perid seven ears will be ranserred he Invesr Edcain andPrecin Fnd (IEPF) esablished nder Secin 205C he Cmpanies Ac, 1956. Members wh have n encashed heirdividend warran(s) s ar r he nancial ear ended March 31, 2004 r an sbseqen nancial ears are reqesed make heir claims he ce r Regisrar and transer Agens, tSR Darashaw Limied (Frmerl taa Share RegisrLimied), 6-10, Haji Msa Parawala Indsrial Esae, 20, Dr. E. Mses Rad, Mahalaxmi, Mmbai - 400 011. I ma als bened ha nce he nclaimed dividend is ranserred IEPF, as abve, n claim shall lie in respec here. the dividend rhe Financial year ended March 31, 2004, i n claimed, will be ranserred he aresaid accn n r aer ocber 4,2011.
g) Fr he cnvenience he Members and r prper cndc he Meeing, enr he place he Meeing will bereglaed b he Aendance Slip, which is annexed he Prx Frm. Members are reqesed ax heir signare a heplace prvided n he Aendance Slip and hand i ver a he enrance.
h) Members can avail he nminain acili, nder Secin 109A he Cmpanies Ac, 1956 b ling Frm N.2B wih heCmpan. Blank rms will be spplied n reqes.
i) I an he members are hlding shares in he same name r in he same rder names, nder dieren lis, henmembers are reqesed ni he same tSR Darashaw Limied a 6-10, Haji Msa Parawala Indsrial Esae, 20,Dr. E. Mses Rad, Mahalaxmi, Mmbai - 400 011 r cnslidain heir sharehlding in a single li.
j) Members are reqesed ni immediael an change address:
TotheirDepositoryParticipants(DPs)inrespectoftheirsharesheldindematform,and
ToTSRDarashawLimitedat6-10,HajiMoosaPatrawalaIndustrialEstate,20,Dr.E.MosesRoad,Mahalaxmi,Mumbai- 400 011, in case he shares being held in phsical rm.
k) In case he Mailing Address menined n his Annal Repr is wih a PINCoDE, Members are reqesed kindlinrm heir PINCoDE he Cmpans Regiser and transer Agen a heir address menined abve.
l) As per Circlars issed b he Minisr Crprae Aairs (MCA) bearing ns. 17/2011 and 18/2011 daed April 21, 2011 andApril 29, 2011 respecivel, members hlding shares in demaerialised rm are reqesed regiser heir email addresseswih heir Depsir Paricipan (DP) and members hlding shares in phsical rm are reqesed regiser heir emailaddresses wih he Cmpan a [email protected] r wih he Regisrar and transer Agens viz. tSR Darashaw Limied [email protected].
under he Ahri he Bard Direcrs
Place : Mmbai H. N. Singh RajpDaed : Ma 2, 2011 Cmpan Secrear
Regtere ce:463, Dr. Annie Besan Rad, Wrli,Mmbai - 400 030
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aexue to the notice
EXPLANAtoRy StAtEMENt prsan Secin 173(2) he Cmpanies Ac, 1956.
1. In erms Secin 173 he Cmpanies Ac, 1956, he llwing explanar saemen ses all he maerial acsrelaing Iem N. 7 he accmpaning Nice daed Ma 2, 2011.
2. Iem N. 7
A he meeing he Bard Direcrs held n Jl 24, 2009, Mr. Vina Bansal was appined as a Direcr in CasalVacanc wih eec rm Jl 24, 2009 cased de he demise Mr. M. A. Bakre, Direcr he Cmpan, in erms Secin 262 he Cmpanies Ac, 1956. the Cmpan has received a nice alng wih a depsi ` 500/- as reqiredb Secin 257 he Cmpanies Ac, 1956, rm a member prpsing Mr. Bansal r his appinmen as a Direcr heCmpan liable reire b rain.
the Bard Direcrs recmmends he appinmen Mr. Bansal as a Direcr he Cmpan, liable reire b rain.
Nne he Direcrs excep Mr. Vina Bansal is deemed be cncerned wih r ineresed in he abve reslin.
under he Ahri he Bard Direcrs
Place : Mmbai H. N. Singh RajpDaed : Ma 2, 2011 Cmpan Secrear
Regtere ce:463, Dr. Annie Besan Rad, Wrli,Mmbai - 400 030
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diectosReport
T,
the members
CEAt Limied
the Direcrs presen heir i-secnd repr, geher wih he adied accns r he ear ended March 31, 2011.
` in Crres
mc 31, 2011 mc 31, 2010
Pr bere taxain 33.24 238.99
Prvisin r:
Crren tax 7.14 74.09
Shr/(Excess) Prvisin r earlier ears (0.12) -
Deerred tax 3.94 3.86
Ne Pr 22.28 161.04
Srpls brgh rward rm previs ear 237.31 108.44
Sm available r Apprpriain 259.59 269.48
Apprpriains:
Prpsed Dividend n Eqi Shares 6.85 13.70
Crprae tax n Prpsed Dividend 1.06 2.32
transer General Reserve 1.70 16.15
Balance carried rward 249.98 237.31
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dividend
the Direcrs are pleased recmmend a dividend ` 2.00 per
eqi share ` 10/- each (i.e. 20 percen) r he nancial ear ended March31, 2011.
Ceats perormanCe
the ear nder review was ne hems challenging in recen imes wihregard raw maerial cs. Naralrbber prices ched an all ime highbh in he inernainal and dmesicmarkes. Pr crp in ke rbberprdcing cnries and srng srge
in demand led an nprecedenedincrease in he price. Naral Rbberand he enire specrm her rawmaerials shwed a rising rend in cssas cmpared he previs ear wihNaral Rbber prices srging p b67 per cen, snheic rbber b 44 percen, carbn black b 14 per cen andnln abric b 16 per cen. the verallbaske raw maerials escalaedb 40 per cen and he pward rendcnines in he crren ear as well.
Wih dmesic cmpeiin inensiingrher, despie bes ers, heCmpan cld n pass n heenire cs increase he csmers.Cnseqenl, margins saw signicanersin and he ne pr declined rm` 161.04 Crres in he previs ear ` 22.28 Crres dring he ear nderreview.
the Cmpans revene saw a grwh 23.5 per cen rm ` 2,808 Crresin he previs ear ` 3,469 Crres
dring he ear nder review. Gdgrwh was visible in all hree markesegmens viz. Replacemen, original
Eqipmen Manacrers (oEM) andExprs. the indsr als grew aab he same rae resling in markeshare he Cmpan remaining a hesame levels.
CEAt cnines be ne he largesexprers res. Wih beer hrsand cnined cs, he Cmpan wasable increase is exprs ` 624Crres, as agains ` 479 Crres r heprevis ear regisering a healhgrwh mre han 30 per cen. the
marke mix r exprs als imprvedsignicanl, leading higher pricerealisain.
the Cmpan has aained greaersrengh in sppl chain managemenand lgisics. Hence, i is nw beerplaced srce and develp alarge base vendrs wh spplnished prdcs nder echnical andmanacring spervisin heCmpan. As a resl, he Cmpan hasscceeded in generaing 23 per cen is revene hrgh srcing. CEAtwill cnine is endeavr explrehe srcing pin imprve ismarke share in ke segmens.
radial plant at halol, GuJarat
the Cmpans sae he ar radialplan wih an verall planned capaci 150 Mt/da a Hall, Gjara hassccessll been cmmissined dringhe ear nder review wih an insalledcapaci 60 Mt/da. Fll capaci
is expeced be cmmissineddring Jl-Sepember 2011 qarer.this is ne he ms ec-riendl
and highl ecien plans in Indiaand will manacre bh trck andBs Radials (tBR) and Passenger CarRadials (PCR). Cmmercial prdcinhas cmmenced rm March 25, 2011which is expeced gradall reach llcapaci ilisain b he end hecrren nancial ear.
Wih he cmmencemen prdcin Radial tres rm he Hall plan,he Cmpan is nw in a psiin caer he rapidl grwing dmesic
marke r Cmmercial and Passengersegmens as well as expli isexensive channels in ke exprmarkes. Ging rward, his plan isexpeced becme he main srce revene r he Cmpan.
Brand aCQuisition
the Cmpan hisricall hadwnership righs n he CEAtrademark in India and 8 her Asiancnries. Dring he ear nder review,he Cmpan sccessll acqired
wrldwide wnership righs heCEAt rademark rm Pirelli & C.S.p.A, Ial r Er 9 millin. Wihhe acqisiin he brand whichis renwned wrldwide, new andhiher nexplred markes will beaccessible he Cmpan and heCmpan wld be in a psiin llexpli he expr marke reslingin increased vlme and beer pricerealisain rm he ear 2012.
The Cpa revee a a grth 23.5 per cet r` 2,808 Crre the prev t ` 3,469 Crre rg the
ear er reve. G grth a vble all three areteget vz. Replaceet, orgal Epet maactrer(oEm) a Eprt.
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industry sCenario and utureoutlook
the Indian ecnm has emerged rmhe glbal nancial crisis remarkabland rapidl, wih a rbs grwh ver 8 per cen. the grwh wasexhibied acrss all segmens he ecnm and he grwh heamive secr has exceededexpecains. the re indsr beingan ancillar he amive secrals experienced increased demand.the re indsr is a uSD 140 billinindsr glball and he Indian treIndsr cmmands a share nl 4.5per cen a uSD 6.8 billin. the indsris prjeced grw a a CAGR ver15 per cen ver he nex ve ears.As he Cmpan embarks n a newphase is jrne, i is beer pised accep new challenges and akell advanage avrable markecndiins. the Cmpan expecs grw a a gd pace in he nex ewears and hpes increase markeshare in all segmens pariclarl PCRand Mrccle.
A dampener n he gd demand
cndiins, hwever, is he raw maerialscenari, pariclarl ha NaralRbber, which is expeced cnine exer pressre n margins in he rsqarer 2012. We are hpel hahe raw maerial prices will sabilisehereaer.
researCh & development
Alng wih he radial plan a Hall,Gjara, he Cmpan has se p anew sae--he-ar-Research andDevelpmen Cenre a he samelcain. this cenre has he mscnemprar eqipmen r esingand develpmen all pes res, inclding res manacredr markes having dicl weahercndiins. this will redce hedependenc he Cmpan nexernal esing cenres and will redcehe need r eld esing res.
the ear 2010-11 als saw signican
R&D ers develp new rawmaerials, new range prdcs andals enhance he qali res.Innvaive lanches rs iskind cnceps in he rck and armcaegr dring he ear nder reviewhave se in min he prcess hgh leadership b CEAt. In ligh he increasing raw maerial css,sccessl ers were made indevelpmen cheaper sbsiesr csl raw maerials wihcmprmising n qali parameers.
this has helped he Cmpan nnl redce cs b als in pimisingmaerial cnsmpin.
assoCiated Ceat kelani venture(J v s l)
the Cmpan has acqired a sake 45.16 per cen in Assciaed CEAtHldings Cmpan Privae Limied(ACHL), he Cmpans invesmenarm in Sri Lanka dring he ear. Wih
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Alg th the raal plat at Hall, Garat, theCpa ha et p a e tate--the-art Reearch
a develpet Cetre at the ae lcat. Thcetre ha the t cteprar epet rtetg a evelpet all tpe tre, clgtre aactre r aret havg clteather ct.
his acqisiin, ACHL has becmea whll wned sbsidiar heCmpan. ACHL cnrls 50 per cen
sake in he jin venre cmpan viz.CEAt Kelani Hlding Privae Limiedwhich in rn has hree whll wnedre manacring cmpanies. ACHLcnslidaes 50 per cen he jinvenre in is accns as per SriLankan laws.
Dring he ear nder review, ACHL hasregisered a revene LKR 3,790.83millin dring 2010-11 as cmpared LKR 2,702.66 millin in he previsear, regisering a grwh 51.90 per
cen. Pr aer ax sd a LKR277.89 millin as cmpared praer ax LKR 261.48 millin. theCmpan has dminan marke share inall caegries res.
Conservation o enerGy,teChnoloGy aBsorption, oreiGneXChanGe earninGs and outGo
A saemen giving deails cnservain energ, echnlgabsrpin, reign exchange earningsand g, in accrdance wih heCmpanies (Disclsre Pariclars inhe Repr he Bard Direcrs)Rles, 1988, is annexed here andrms par his repr.
human resourCes
the Cmpan cnines cs nperrmance managemen hrghleveraging he Balanced BsinessScre Card and riggering Clretransrmain. Iniiaives have als
been aken wards driving prdcivihrgh tal Qali Managemen(tQM) and in develping and reaining
criical alen hrgh caching andmenring. the tQM mvemen hasaken rs in he manacring areaand a clre srng cninsimprvemens as well as breakhrghresls are seing in.
the Cmpan has kick-sared acampaign imprvemen in empleeengagemen hrgh MRM Cnneca rm where he p managemen he Cmpan engages wih heemplees n a qarerl basis and
share and exchange views n Cmpanperrmance. the Cmpan has alssared a prgramme rewards andrecgniin r emplees hrghqarerl awards r excellencein perrmance, leadership andimprvemen in crss ncinalcllabrain.
employee statement
In erms Secin 217(2A) heCmpanies Ac, 1956 read wih heCmpanies (Pariclars Emplees)Rles, 1975, as amended, he namesand her pariclars emplees he Cmpan, are reqired bese in his repr. Hwever, as perprvisins Secin 219 (1) (b) (iv) he said Ac, he Annal Reprexclding he aresaid inrmain isbeing sen all he members heCmpan. thse members wh aredesirs baining ll inrmainare reqesed wrie he Cmpan.
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suBsidiary Company
the Minisr Crprae Aairshas vide General Circlar N. 2/2011daed Febrar 8, 2011 granedgeneral exempin rm aaching heaccns and nancial saemens sbsidiar cmpanies as prvided nderSecin 212 (8) he Cmpanies Ac,1956, prvided cndiins speciedin he said Circlar are llled. theCmpan has cmplied wih all hecndiins menined in he abvecirclar. therere, he Annal Accns he whll wned sbsidiar he Cmpan i.e. Assciaed CEAtHldings Cmpan (Privae) Limied(ACHL) have n been annexed his Repr. Hwever, he same arepen r inspecin a he Regiseredoce he Cmpan and als ahe Regisered oce ACHL. Anmember desirs baining hesame ma reqes he Cmpan inwriing.
direCtors
In accrdance wih he Cmpanies Ac,1956 and Aricles Assciain, Mr. H.
V. Genka, Mr. S. Dreswam and Mr.Bansi S. Meha reire b rain andbeing eligible, have ered hemselvesr re-appinmen.
Mr. Vina Bansal was appined asdirecr he Cmpan in he casalvacanc cased de he demise Mr. M. A. Bakre. He wld hld cep he dae his Annal General
Meeing. A Nice has been receivedrm a member prpsing he name Mr. Vina Bansal as Direcr reiring
b rain. Members are reqesed appin Mr. Vina Bansal as Direcr ahis Annal General Meeing and heBard Direcrs recmmends heappinmen Mr. Vina Bansal asDirecr.
Mr. Paras K. Chwdhar was re-appined as he Managing Direcr he Cmpan r a perid rm
Janar 18, 2011 March 31, 2012. thisre-appinmen was apprved b heBard Direcrs a heir meeing
held n ocber 20, 2010 and b hesharehlders vide a reslin passedhrgh Psal Ball n March 11, 2011.
issue o preerentialWarrants
Prsan he Special Reslinpassed b he sharehlders hrghPsal Ball n Sepember 17, 2010, heCmpan has n Sepember 30, 2010issed and alled 17,12,170 Warrans he Prmers n a preerenialbasis cnverible in an eqal nmber eqi shares a a price ` 141.44per Warran. o he said price, 25 percen has been received p-rn a heime allmen i.e. n Sepember 30,2010 and he Warrans are cnveriblein eqi shares a he pin heallees wihin a perid 18 mnhsrm he dae allmen, he las dar cnversin being March 31, 2012.
drg the ear er reve, the Cpa ccellacre rle erhp rght the CEAT
traear r Prell & C. s.p.A, ital r Er 9 ll.
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direCtors responsiBilitystatement
Prsan Secin 217 (2AA) heCmpanies Ac, 1956, r Direcrs, he bes heir knwledge and belie,cnrm ha:
i) he applicable AccningSandards have been llwedin he preparain he annalaccns
ii) sch accning plicies have beenseleced and applied cnsisenland sch jdgemens andesimaes have been made ha are
reasnable and prden s as give a re and air view he sae aairs he Cmpan in heBalance Shee as a March 31, 2011and he Pr and Lss Accnr he said nancial ear viz. April1, 2010 March 31, 2011
iii) prper and scien care hasbeen aken r he mainenance adeqae accning recrdsin accrdance wih he prvisins he Cmpanies Ac, 1956 r
saegarding he asses heCmpan and r preveningand deecing rad and herirreglariies
iv) he annal accns have beenprepared n a ging cncern basis.
Corporate GovernanCe
A repr n crprae gvernance,alng wih a cericae rm headirs he Cmpan, regarding he
cmpliance cndiins crpraegvernance, as als he ManagemenDiscssin and Analsis Repr, as
siplaed nder Clase 49 heLising Agreemen, are annexed hisrepr.
auditors
Messrs N. M. Raiji & C., adirs heCmpan, reire a he ensing AnnalGeneral Meeing and being eligible,er hemselves r re-appinmen.
aCknoWledGement
yr Direcrs place n recrd heir
appreciain r he cnined spprand cperain received rm hecsmers, sppliers, dealers, nancialinsiins, banks, members andCenral/Sae Gvernmens wardscndcing he bsiness heCmpan dring he ear nder review.
on behal he Bard Direcrs,
H. V. Genka Paras K. ChwdharVice Chairman Managing Direcr
Place : Mmbai
Daed : Ma 2, 2011
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aexueto the Directors Report
Conservation o enerGy
(a) the Cmpan cnined givemajr emphasis r cnservain energ, and he measres akendring he previs ears werecnined. the Ecienc Energuilisain in each manacring
ni is mnired a he crpraelevel ever qarer, in rder achieve eecive cnservain energ. the signican EnergCnservain measres dring heear were:
Idenicain and mniring perain high energcnsming lad ceners and alsspecic lads like Cmpressrsand Briqee biler ec.
use Energ Ecien Lighing
ssems like t5 lamps, Cmpacfrescen lamps and t8frescen be lighs wihelecrnic ballass
Swiching machines/eqipmen when n in se andswiching lighs in areasn having adeqae acivi bregrping/repsiining heacivi s ha here will n bean wasage energ de lighing
12 Pnemaic his replacedwih elecrical his
Amaic pwer acrcrrecin (KVAR) panelcnneced in plan achieveni pwer acr and redcinin sbseqen energ lss
Insallain cmpressrcnrller ssem
Cenralised Plan lighing circiand xing energ savinglighing cnrller ni
Insallain energ ecienscrew cmpressr in ili area
Replacemen ld cmpressedair pipe lines wih new pipe lines
Banbr 2 speed redcinhrgh recipe
Dal re brner wih VFD
65 was CFL lamp r sreeand dsing area lighing
Cnversin Pnemaicpking drill heads wihelecrmechanicall drill head- 5ns.
Insallain APFC r reacivepwer managemen
Energ ecien ballas in place cpper ballas
Fine ning he Ltransrmer vlages
Inrdced hea recver ni inbriqee biler ssem saveenerg, saved 2 per cen el
Imprved Cndensae recverb 20 per cen
Redcin in seam/prdcinrai b 30 per cen
Replaced tD raps wih ball fapraps
New plae pe hea exchangersinsalled
(b) Addiinal invesmens/Prpsalsr redcin Cnsmpin energ.
Harmnic cnrller Panels
37 kw Cld eed exrder in
place 90 kw BC mill
Cenralised ce lighing circiand xing energ savinglighing cnrller ni
Replacemen ld ineciencmpressr insrmenainair wih energ ecien screwcmpressr
Insallain energ ecienpmps
Cmpressed air linesreplacemen
Energ ecien pmp r HPCWssem
Pnemaic pking machinesdrill heads be replaced wihelecric n remaining machines
Energ ecien screwcmpressrs in place reciprcaing cmpressrs
Maximising he capaciilisain 8 x 10 CFE line
Energ ecien air knie rwaer remving n exrdingline
Cnversin il red bilers gas (PNG) red bilers
Conservation o enerGy, teChnoloGy aBsorption and oreiGn eXChanGe earninGs and outGo.
(Prat t the Cpae (dclre Partclar the Reprt Bar drectr) Rle, 1988)
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Replacemen Briqee Bilerwih Gas (PNG) red Biler
New LP dme line r rckpresses
(c) Impac he measres a (a) and
(b) abve r redcin energcnsmpin and cnseqenimpac n he cs prdcin gds.
the abve ers have helped inredcin pwer cnsmpinper kg. prdcin. Hwever, heacal pwer cnsmpin has gnep de change in prdc-mix.
(d) tal energ cnsmpin andenerg cnsmpin per ni
prdcin, as per Frm A.
orm a
2010-11 2009-10
a. poWer and uel Consumption
1. ELECTRiCiTy
(a) Prchae unis (KWH) 9,94,24,200 9,53,72,595
tal Amn (` in Crres) 56.65 49.73
Rae per ni (`) 5.70 5.21
(b) o geerat
(i) thrgh Diesel Generar :
unis (KWH) 2,14,824 2,56,855
unis/ Lire Diesel (KWH) 2.76 2.50
Cs per ni (`) 14.25 13.63
2. uRnACE oiL
Qani ( K.Lrs.) 11,331 11,644
tal amn ( ` in Crres) 29.33 27.59
Average rae ( `per Lire) 25.88 23.69
3. L.s.H.s.
Qani ( K.Lrs.) 3,409 9,212
tal amn ( ` in Crres) 8.80 19.68
Average rae ( ` per Lire) 25.83 21.37
4. BRiquETTEs
Qani (tnnes) 50,429 23,407
tal amn (` in Crres) 27.37 11.55
Average rae ( `per Kg) 5.43 4.94
5. GAsQani (SCM) 60,758 -
tal amn ( ` in Crres) 0.12 -
Average rae (` per SCM) 19.96 -
B. Consumption/ unit o produCtion
(i) Elecrici (KWH/Mt.) 680.67 690.27
(ii) Frnace oil ( Lrs./ Mt) 77.41 84.05
(iii)Briqees (KG / Mt) 344.50 168.96
(iv)Gas (SCM / Mt) 0.42 -
(v) L.S.H.S ( Lrs./ Mt) 23.29 66.49
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teChnoloGy aBsorption, adaptation and innovation
1) EoRTs, in BRiE, mAdETowARds TECHnoLoGyABsoRPTion, AdAPTATion AndinnoVATion
Adapain sae he arechnlg r radial passengerand rck res
the bene he abve cld
be realised in erms imprvedre lie and lwer rllingresisance (el ecienc rhe vehicle)
the Rice Special R2 arm re isan innvaive cncep ha hasbeen inrdced and is receivingpsiive csmer respnse
2) BEnEiTs dERiVEd As A REsuLTo THE ABoVE EoRTs E.G.PRoduCT imPRoVEmEnT,
CosT REduCTion, PRoduCTdEVELoPmEnT , EnTRy To nEwmARkETs ETC.
Shrer develpmenal ccler prdc csmisain wihoEMs and develpmen andenabling enr he high echsegmen he majr amanacrers
New prdcs wih higher level perrmance were develpedin main prdc caegries,
PRo series in rck bias,Bland series in ligh rck bias,Gripp and Milaze in Mrccle, Ashman in Farm
Alernaive recipe develpmenr managing vlaili in rawmaerial price and availabili
Redcing dependence nperlem rigin raw maerials
3) in CAsE o imPoRTEd TECHnoLoGy (imPoRTEd duRinG THE LAsT iVEyEARs RECkonEd Rom THE BEGinninG o THE inAnCiAL yEAR)oLLowinG inoRmATion mAy BE uRnisHEd
a) technlg impred Nil
b) year impr N Applicable
c) Has he echnlg been ll absrbed? N Applicable
d) I n ll absrbed, areas where his hasn aken place, reasns here and rePlan acin
N Applicable
oreiGn eXChanGe earninGs and outGo
a) Aciviies relaing exprs, iniiaives aken increase exprs, develpmen new expr markes r prdcs and services and expr plans.
Please reer he main repr.
b) tal reign exchange sed and earned
` in Crres
2010-11 2009-10
i) Freign exchange earned 631.87 482.84
ii) Freign exchange sed 1,225.29 669.55
on behal he Bard Direcrs,
Place : Mmbai H. V. Genka Paras K. ChwdharDaed : Ma 2, 2011 Vice Chairman Managing Direcr
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eConomiC revieW
the Indian ecnm has nce again emerged as ne he ms sccessl perrmers glball wih he GDP grwh 8.6 percen. the grwh has been brad wih a rebnd in he agriclral (5.4 per cen), indsrial (8.6 per cen), and manacringsecrs (9.1 per cen). Alhgh here have been ew hreas and crises in he Indian ecnm de he high raes infainand increase in expenses essenial cmmdiies like d and il, he Indian plic makers are ring a wa ensressainable lng erm grwh.
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
GDP rend* (%) 9.5 9.6 9.3 6.8 8.0 8.6
(Srce: CSo * Grwh in GDP a acr cs a 2004-05 prices)
the pace ecnmic acivi in he cnr is direcl refeced in he re ake b dieren ambile segmens. theprspecs he Indian ecnm have hs agred well r he Indian re indsr.
mgeet
Discussion and Analysis
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tyre industry revieW
GLoBAL sCEnARio
As April 2011, he Glbal tre marke is wrh apprx uSD 140 billin, wih heoriginal Eqipemen Manacrer (oEM) segmen and replacemen segmencnsiing 30 per cen and 60 per cen respecivel he verall re markes.owing excellen rad inrasrcre, he exen radialisain is mch higher
in he develped nains. the average radialisain levels in he medim heavcmmercial vehicles is arnd 60 per cen, whereas in gegraphies like NrhAmerica and Erpe i is as high as 95 per cen.(Srce: Invesmen Inrmain and Credi Raing Agenc India Limied, April 2011)
GloBal tyre industry Composition (%) (as o eBruary, 2011)
6027
6
412
Passenger Cars and LCVs trcks and Bses Farh Mvers
2 Wheelers Agriclral Aircra
(Srce: CRISIL)
indiAn sCEnARio
the chrnicle Indian re indsr sared in 1926. Since hen, he indsr hasgrwn rapidl, harmnising wih he grwh ambile indsr. A highl capialand raw maerial inensive and predminanl crss pl (r bias) re manacringindsr, prdces all caegries res, excep snw res and aer res. theindsr is dminaed b he rganised secr while he nrganised secr hldscnrl ver biccle res. Aer he absmal perrmance ps slwdwn in Fy2009, he indsr has winessed cnsiderable rebnd in Fy 2010, driven b heecnmic revival, resrgence in ambile demand, rising per capia incme andease ineres raes.
snapshot on the indiantyre industry
`25,000 C tal rnver
`1,430 C Imprs`3,000 C Exprs
5% Glbal re demand
36 Nmber cmpanies
60 Manacring plans
t 10 c accn r85-90% he al prdcin
(Srce: Invesmen Inrmain and Credi Raing
Agenc India Limied, April 2011)
Glbal Tre aret rth appr usd 140 bll, th the oEmeget a replaceet eget ctttg 30 per cet a
60 per cet repectvel the verall tre aret.
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While mre and mre peple p r w-wheelers, vale-wise; he secr issrngl dminaed b he Medim Heav Cmmercial Vehicle (MHCV) and LighCmmercial Vehicle (LCV) segmen, a refecin direcl linked he cnrsecnmic develpmen. Wih greaer access , and inrdcin , ardablePassenger Vehicles (PV), Cars and uili Vehicles (uV) llw a clse secnd. thew-wheeler, hree-wheeler, exprs and her segmens sch as o the Rad(otR), racrs, cnsrcin eqipmen, ec. cllecivel cnsie he remainingpie.
tyre produCtion in india (nb t 000)
ohers 2 Wheeler LCV
Passenger Car trck and Bs
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
100
80
60
40
20
0
(Srce: AtMA, April 2011)
value-Wise seGment alloCation (%)
MHCV LCV
Cars and uVS ohers
62
18
7
13
(Srce: Crisil Research, Febrar, 2011)
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industry Composition
REPLACEmEnT mARkET
the replacemen marke dminaes he Indian re indsr accning r 71 percen he al re -ake. this segmen is ms sgh aer in India as iprvides a beer margin cmpared he oEM segmen.
oRiGinAL EquiPmEnT mAnuACTuRERs (oEm)
this segmen cnsies 21 per cen he al marke demand. Wih increasedlanch new cars, he oEM segmen is expeced grw arnd 17-18 per cen in2011-12.
ExPoRTs
Exprs cmprise he remaining 8 per cen. the Indian res are expred mainl Asia, Arica, Middle Eas and Lain America. Cmmercial Vehicle (CV) res dminaehe exprs, wih mre han 60 per cen share, r which he primar exprdesinains are Lain America, uAE, Bangladesh, Iran, Philippines, and Vienam.PV res cnsie arnd 18 per cen he marke demands (expr desinainuAE and Nigeria).(Srce: Invesmen Inrmain and Credi Raing Agenc India Limied, April 2011)
tyre markets Break-up (%)
71
21
8
Replacemen oEM Exprs
(Srce: Crisil Research, Febrar 2011)
industry GroWth (%)
9.810.9
10.410.4
13.1
10.6
2004-05 2009-10 2009-10 2014-15E
oEM Replacemen tal
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RoBusT GRowTH o AuTomoBiLE indusTRy
India cnines cnslidae is psiin in he glbal space. I is he sevenh largesvehicle prdcing nain in he wrld, accning r 5 per cen glbal a prdcin,p rm 1.4 per cen a he beginning 2000. the indsr as a whle is expeced grw arnd 15-20 per cen annall in he cming ears. I expecs PV sales, incldingexprs, ch 5.1 millin nis b 2015. Again, CV sales (which accns r mrehan 70 per cen CEAts al revene) inclding small, medim and large cmmercialvehicles are expeced ch 1.42 millin. the rise in a demand wld increase hedemand r oEM res, which will rher ranspire in replacemen demand in nex wears. the verall demand grwh wld drive revene visibl r re manacrers likeCEAt r nex w ears.(Srce: SIAM, April 2011)
PRoduCTion And sALEs TREnd o indiAn AuTomoBiLE indusTRy
(t nb)
dc 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Prdcin 97,43,503 1,10,87,997 1,08,53,930 1,11,72,275 1,40,57,064 1,79,16,035
Sales 89,06,428 1,01,23,988 96,54,435 97,24,243 1,22,95,397 1,55,13,156
(Srce: Scie Indian Ambile Manacrers, April 2011)
RAdiALisATion
In recen imes, radialisain is he ms impran innvain in re indsr as iimprves driving, saves el and prvides addiinal mileage. In India, he radialisainhas been nl seen in he PV segmen (98 per cen), while he MHCV segmen has nl8.6 per cen radialised res as cmpared he glbal average 65 per cen.
the reasn r lwer radialisain was pr rad inrasrcre and verlading reighcrridrs which made radial res nviable in India. Hwever, he Gvernmen has nwbegn emphasise n he imprvemen rad inrasrcre hrgh is NainalHighwa Develpmen Prgramme. I has als laid crbs agains verlading rcks nmajr reigh crridrs. these measres wld lead a srnger demand r radial resin he cming ears.
radialisation (%)
10095 96
71
57
48
208.6
65
(Srce: CRISIL Research, Febrar 2011)
Wesern Erpe Nrh America
Cenral Erpe Arica Middle Eas Asia
Sh America Asia
Easern Erpe India
Wrld
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RAw mATERiALs
the re indsr is highl raw maerial inensive. ths, raw maerials pla a pivalrle in Indian re indsr, cnsiing arnd 72 per cen he cs prdcinand 63 per cen re indsr rnver.
PRiCE ComPosiTion o GEnERAL CommERCiAL TyRE (%)
43
18
11
5
45
5
9
Naral Rbber Nln tre Crd Fabric
Carbn Black Rbber Chemicals
Bl Rbber PBR (Plbadiene Rbber)
SBR (Srene Badiene Rbber) ohers
(Srce: Amive tre Manacrers Assciain, April 2011)
Business overvieW
CEAt Limied is geared mee csmer needs in ever segmen. I ers a widearra res, which inclde heav d trcks and Bses (t&B), Ligh CmmercialVehicles (LCVs), Passenger Cars (PC), earhmvers and rklis (Special segmen),
racrs, railers, scers, mrccles, a-rickshaws and 2/3 wheelers. theCmpan markes faps and bes srced rm parners, hereb becming ane-sp shp caer is wide cnsmer base.
trck and Bs res are he highes cnribr he annal rnver heCmpan (61 per cen). In erms marke segmens, replacemen markecnribes arnd 75 per cen in he pline.
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sEGmEnT-wisE PRoduCT PoRToLio (%)
60
11
10
8
4
7
trcks and Bses 2-3 wheelers
Ligh Cmmercial Vehicles Farm
Car/ Jeep o the Rad and Indsrial Vehicles
mARkET-wisE VALuE BREAkuP (%)
70
14
16
Replacemen oEM Expr
perormanCe overvieW
oPERATionAL oVERViEw
t enrich csmer experience, he Cmpan cninsl expands is range prdcs and services. t aciliae he padd armer, CEAt lanched Indias rsRice Special re (Aashmaan R2) las ear r racrs sed in padd elds.Besides his, he Cmpan was als invlved in he llwing aciviies ac pnvaris learning rm is cnsmer eedback.
nEw PRoduCT LAunCHEs
trck High mileage ; high lad rn re 10.00-20 1 RD 12
LCV Premim Bland Range tres acrss all sizes
Las Mile Rib re in 165 D 12 and 165 D 13 sizes
Mrccle Premim Gripp range acrss ke sizes; Lanched Milaze andZm paerns in selec sizes. Special re r md errain rHer Hnda develped
Passenger New sizes inrdced in Milaze range
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CEAT PRo
CEAt acivel rganisesedcainal sessins knwn asCEAt PRo spread awarenessamng rck wners abhe bes bsiness pracices imprve perainal ecienc.the Cmpan has cndced58 sch seminars las earwih exper speakers n lbes,a nance and insrance,
vehicle AMCs, elemaics, andher relaed pics r beercsmer saisacin, reslingin higher pr margins.
Tre servce Cetre (TsC)
the backbne CEAts tBRchannel sraeg, is tre ServiceCenre (rmerl he WheelManagemen Cenre) caers all service reqiremens arck fee wner. the crrenw tSCs prvide end--end
slins csmers b,, service, reread and dispseres a a single pin. theCmpan aims prvide hecnvenience 10 her tSCs inFy 12.
inAnCiAL oVERViEw
Ne sales increased 23 per cenrm ` 2,80,747.60 lacs in 2009-10 ` 3,46,892.25 lacs in 2010-11. the grwh is aribed expanded prdc prli,
increased sales vlme, sperircsmer service and imprvedcapaci ilisain.
Secred lan alms dbledrm ` 31,205.11 lacs in 2009-10 ` 62,413.46 lacs in 2010-11,mainl ilised r Capaciexpansin a Hall andacqisiin CEAt brandrm Pirelli & C. S.p.A, Ial.
operaing expense increasedb 39 per cen becase he54 per cen hike in cs rawmaerials, which impaced he
PAt. PAt decreased rm `16,104.15 lacs in 2009-10
` 2,228.33 lacs in 2010-11.
opportunities and threats
owing increased awareness amngcnsmers and he sead grwh Glbal and Indian ecnm, heambile indsr is all se rrbs grwh, which will in rncnribe healh oEM demand.on he her hand, he grwing
vehicle pplain will agmendemand in he replacemen remarke prprinael. Invesmen ininrasrcre and prjecs NainalHighwa Develpmen Prgrammerher nrres indsr escalain.Besides, he lw radialisain in CVres prvides ample scpe r indsrexpansin. Hwever, increased imprs,especiall cheap Chinese res, inhe Indian trck and Bs radial resegmen pses a cnsiderable hrea he indsr.
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industry risks and ConCerns
inCREAsEd CosT o nATuRAL RuBBER
As res are mainl cmpsed naral rbber (72 per cen he al prdcincs), increased prices highl infence he indsr. tre secr is he largescnsmer rbber (al cnsmpin rbber b re indsr: 60 per cen), wiha mnhl demand 75,000-80,000 nne. thgh he al rbber prdcin isexpeced ch 8.6 lakh nne in Fy 2011, here will sill be a deci 85,000-90,000 nnes. Recen fds in thailand pshed he price rbber a recrdheigh ` 243/kg which is a seris cncern r he whle indsr.
(Srce: the Ecnmic times, March 2011)
monTHLy RuBBER PRiCE moVEmEnT (Prce per kg. `)
2004 2005 2006 2007 2008 2009 2010 2011
n rbbpc - g
250
200
150
100
50
0
(Srce: Reers, March 2011)
non TARi mEAsuREs on imPoRT o TyREs And RAw mATERiALs
thgh impr naral rbbers is nder open General Licence (oGL), hedmesic rbber price is se p b he Gvernmen hrgh he mechanism Minimm Sar Price (MSP). oen, ha leads a dmesic price higherhan he inernainal price. the impr d n naral rbbers is als qie high.
Alernaivel, he csm d n impr res is ver less (nil r Bangladesh,Bhan, Maldives and Nepal). S even i here is scpe r raw maerial impr,he pin is n ver easible r he Indian plaers and he have depend ndmesic rbber prdcin.(Srce: ICRA Repr, Jne 2009)
inCREAsEd CRudE oiL PRiCE
Rising crde il price is als a hrea he re indsr, as carbn, snheicrbber and nln re crds areperlem b-prdcs.
inCREAsEd ComPETiTion
Aer liberalisain, severalmanacrers are expandingglball b acqiring r seing pmanacring bases verseas, whichescalaes dmesic cmpeiin.
unCERTAinTiEs in ExTERnALEnViRonmEnT
the Indian re indsr aces majrcncerns sch as rising infain,rblen ecnmic envirnmen,cmpeiin rm imprs, and rise inineres raes.
outlook
Fllwing sraegies demnsraeCEAts srng mivain and penial capialise he grwh pprniiesprevailing in he indsr.
inCREAsEd PREsEnCE inREPLACEmEnT mARkET To imPRoVEmARGins
Lwer bargaining pwer remanacrers wih oEMs resl ina lw pr margin he segmencmpared he replacemen marke.
CEAt Shppes and CEAt Hbs reslin wider reach amng end sers. thisenhanced accessibili has increasedhe replacemen marke share rCEAt. t leverage he pprniand imprve he verall margin,he Cmpan is gradall shiingwards imprved prdc mix in hereplacemen segmen.
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sHiT o CEAT TowARds HiGHER mARGin REPLACEmEnT mARkET (% sale)
ic w g-grc
Fy 2009 Fy 2010
oEM Expr Replacemen
9
15
19
68
18
74
EmPHAsisinG CommERCiAL VEHiCLEs sEGmEnT
CV segmen cnribes mre vale revenes. I herere regisers a higherCAGR cmpared he PV segmen. Mrever, CV res are generall replaced a aninerval 12 14 mnhs, a shrer ime span as cmpared he 24 48 mnhreplacemen perid he PV re. Frher, sage radial res is sill a a sage inanc in CVs, which pens a hge scpe r expansin. CEAt hs capialises nhis pprni wih a greaer cs n CV res. In Fy 2010, mre han 70 per cen he al revene he Cmpan came rm his segmen.
CommERCiAL VEHiCLE(nber Vehcle 000)
exc gw CaGr18.3% 2015
292
384 432570
608459
612
1420
2004 2005 2006 2007 2008 2009 2010 2015E
(Srce: SIAM, April 2011)
PAssEnGER VEHiCLE(nber Vehcle 000)
exc
gw CaGr12.8% 2015
1,119
1,376
1,4851,744
1,9962,174
2,797
5,100
2004 2005 2006 2007 2008 2009 2010 2015E
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CAPACiTy ExPAnsion
till Fy 2010, he capaci CEAtsd a 410 nnes per da. theCmpan has se p a green eld radialmanacring acili a Hall ( 150nnes per da trck and Bs, Ligh
trcks and Passenger Vehicle radials),which will increase he capaci he Cmpan 560 nnes per da.A rher vale addiin 35 nnesper da radial re a Nasik plan isexpeced lead he al prdcin he Cmpan 595 nnes per da bhe end Q4 Fy 2012.
ACquisiTion o BRAnd CEAT RomPiRELLi
the Cmpan has acqired glbal righs CEAt brand rm he Ialian re
maker, Pirelli r Er 9 millin. thisacqisiin is expeced dble heexpr revenes ver he nex hreeears. Prir he said acqisiin, heCmpan was he wner he brandin nine Sh Asian cnries. Pirellihas exclsive righs he CEAtbrand in Erpe, Lain America, Mexicand trke p December 31, 2011,ps which he Cmpan shall havecmplee righs he brand.
risk manaGement
R: Rising raw maerials pricescld cnsiderabl aec hepr margin.
mtgat: CEAts lng presence and
experience in he indsrcnribe he wisdm planning in advance keephe risk he minimm.
R: Demand fcain indieren prdc caegries.
mtgat: Srng presence acrssall re caegries andexensive dmesic andinernainal newrk easeshe risk cnsiderabl.
R: Rising dmesic cmpeiinas well as imprs rmChina.
mtgat: Sperir aer sales service,exended credi peridin addiin he ani-dmping d impsedn Chinese res will helphe Cmpan managedmesic cmpeiin agrea exen.
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internal Control systems andtheir adeQuaCy
In an indsr, he prcesses andinernal cnrl ssems pla acriical rle in he healh heCmpan. CEAts well dened
rganisainal srcre, dcmenedplic gidelines, dened ahrimarix and inernal cnrls ensreecienc perains, cmpliancewih inernal plicies and applicablelaws and reglains as well asprecin resrces. Mrever,he Cmpan cninsl pgradeshese ssems in line wih he besavailable pracices. the inernal cnrlssem is spplemened b exensiveinernal adis, reglar reviews bmanagemen and sandard plicies
and gidelines ensre reliabili nancial and all her recrds prepare nancial saemens and herdaa. the managemen inrmainssem prvides imel and accraeinrmain r eecive cnrl.Reprs n ke perrmance indicarsand variance analsis vis--vis hebdges are discssed and acinplans are drawn r prper llw pa reglar Managemen Cmmieemeeings. A each Bard Meeing,perainal reprs are abled aer
being discssed a Adi CmmieeMeeings.
material developments inhuman resourCes
the Cmpan recgnises he vale is wrk rce r cnins grwh.A well drawn recrimen plic, clearldened rles and respnsibiliies,
individal perrmance managemenssems, and perrmance-basedcmpensain plicies aciliae heemplee prgress and encrageinnvaive hinking. the Cmpanhas als idenied reqiremensr raining and develpmenpprniies, bs credibili manpwer as well as bsiness prcess.Sch iniiaives als develp a sense wnership wihin he rganisain.
Cautionary statement
Saemens in he ManagemenDiscssin and Analsis describinghe Cmpans bjecives, prjecins,esimaes, expecains ma berward-lking saemens wihinhe meaning applicable secriieslaws and reglains. Acal reslscld dier maeriall rm hseexpressed r implied. Impranacrs ha cld infence heCmpans perains inclde ecnmicdevelpmens wihin he cnr,demand and sppl cndiins in
he indsr, inp prices, changes inGvernmen reglains, ax laws andher acrs sch as liigain andindsrial relains.
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CopoteGovernance Report
i Company philosophy
the Cmpans philsph nCrprae Gvernance mirrrs is
belie ha principles ransparenc,airness and accnabili wardshe sakehlders are he pillars agd gvernance ssem. the Cmpanbelieves ha he discipline CrpraeGvernance perains ssems, bwhich cmpanies are direced andcnrlled, keeping in mind lng-erm ineress sharehlders,while respecing ineress hersakehlders and scie a large. Iaims align ineress he Cmpanwih is sharehlders and her
ke sakehlders. Accrdingl, hisCmpans philsph exends bendwha is being repred nder hisRepr and i has been he Cmpanscnsan endeavr aain he higheslevels Crprae Gvernance.
this Repr is r cmpliance Clase49 he Lising Agreemen, whichhe Cmpan has enered in wih heSck Exchanges.
ii Board o direCtors
In erms he Cmpans CrpraeGvernance Plic, all sar
and her signican and maerialinrmain inclding inrmainmenined in Annexre IA Clase49 he Lising Agreemen areplaced bere he Bard enable i discharge is respnsibiliies sraegic spervisin he Cmpanwih de cmpliance laws and asrsees sakehlders.
1. ComPosiTion
A presen he Bard Direcrs he Cmpan cnsiss welve(12) members, whm w (2) areExecive Direcrs and en (10)are Nn-Execive Direcrs.
the Chairman, Dr. R. P. Genkais a Nn-Execive Direcr. Mr.Paras K. Chwdhar, he ManagingDirecr and Mr. Anan VardhanGenka, he Dep ManagingDirecr are he ExecivesDirecrs. the Direcrs are eminen
indsrialiss/pressinals wihexperience in indsr/bsiness/
nance/law and bring wih hemhe repain independen
jdgmen and experience, whichhe exercise and als sais hecrieria independence. Hwever,he Bard Direcrs, adping amre exacing view, has decided rea nl he Direcrs, as indicaedin Para II-2 belw, as independendirecrs.
2. BoARd mEETinGs HELdduRinG THE yEAR And
ATTEndAnCE THEREATDring he nancial ear endedMarch 31, 2011, ve (5) meeings he Bard Direcrswere held n April 29, 2010, Jl27, 2010, Sepember 30, 2010,ocber 20, 2010 and
Janar 25, 2011.
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detal drectr a ther atteace the a Bar meetg a al at the lat Aal Geeral meetg aregve bel:
n Cg
n. B
mg
g
W aGm J 27,
2010
n. dc-
bc
c
n. C
bc
c*
Chairman Member
Dr. R. P. Genka Nn-Execive Nn-Independen 0 N 2 - -
Mr. H. V. Genka Nn-Execive Nn-Independen 5 yes 8 - -
Mr. Paras K. Chwdhar Execive Nn-Independen 5 yes 7 - 2
Mr. Anan Vardhan Genka Execive Nn-Independen 5 yes 5 - -
Mr. Mahesh S. Gpa Nn-Execive Independen 5 yes 13 3 4
Mr. A. C. Chkse Nn-Execive Independen 4 yes 8 - -
Mr. S. Dreswam Nn-Execive Independen 4 yes 6 3 4
Mr. Haigreve Khaian Nn-Execive Independen 1 N 14 - 9
Mr. Bansi S. Meha Nn-Execive Independen 4 yes 14 5 5Mr. Hari L. Mndra Nn-Execive Independen 5 yes 1 1 -
Mr. K. R. Pdar Nn-Execive Independen 3 N 4 - -
Mr. Vina Bansal Nn-Execive Independen 4 yes 1 - -
* onl Adi Cmmiee and Sharehlders/Invesrs Grievance Cmmiee are reckned r his prpse.
3. dETAiLs o diRECToRsPRoPosEd oR APPoinTmEnT/RE-APPoinTmEnT AT THE
oRTHCominG AnnuAL GEnERALmEETinG [PuRsuAnT To CLAusE49 (iV)(G)]
) mr. H. V. Gea
Mr. H. V. Genka is he Chairman RPG Enerprises Limied, ne he leading bsiness grpsin India wih ver uSD 3.7 billinin annal sales. RPG Enerpriseshas ineress in Secrs like
Pwer, tres, transmissin,Reail, technlg andEnerainmen.
Mr. Genka cmes rm he wellknwn amil indsrialiss Klkaa and is he sn Dr. Rama Prasad Genka. Mr.Genka gradaed in Ecnmicsand is an MBA rm IMD,Swizerland. He is Chairman KEC Inernainal Limied, RPGLie Sciences Limied, Zensartechnlgies Limied and ViceChairman CEAt Limied. Mr.
Genka, a pas Presiden he Indian Merchans Chamber(IMC) serves n he Execive
Cmmiee he Federain Indian Chambers Cmmerceand Indsr (FICCI) and is aMember he FndainBard IMD, Lasanne,Swizerland.
He is 53 ears age, marriedand has a sn and a dagher,bh whm are married. Hisineress are ar and sprs.
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other drectrhp
Bajaj Elecricals Limied
Zensar technlgies Limied
KEC Inernainal Limied
RPG Enerprises Limied
Rachem RPG Privae Limied
RPG Lie Sciences Limied
Spencer Inernainal HelsLimied
the Sae Indsrial &Invesmens Crprain Maharashra Limied (SICoM)
meber/Chara the llg Cttee
n C n C mb/C
Caliber Pin Bsiness Slins Limied Adi Chairman
Panaln Reail India Limied Adi Chairman
Panaln Reail India Limied Invesrs Grievance Member
Shaki Sgar Limied Adi Member
Rama Newsprins and Paper Limied Adi Chairman
Hexaware technlgies Limied Adi Member
Hexaware technlgies Limied Invesrs Grievance Member
Mr. Genka is n Chairmanr Member an Adir Sharehlders/InvesrsGrievance Cmmiee.
) mr. s. drea
Mr. S. Dreswam is apressinal banker wih ab35 ears experience. Hehas held a varie senirperainal and adminisraiveassignmens. He was heChairman and ManagingDirecr w large pblicsecr banks- Dena Bank andCenral Bank India, makingsignican cnribin heirgrwh and prgress dring hisenre.
He is crrenl engagedin crprae and nancialcnslanc and is n heBards a ew well knwncmpanies.
other drectrhp
Panaln Reail India Limied
Shaki Sgar Limied
Hexaware technlgies Limied
Caliber Pin Bsiness Slins
Limied
Rama Newsprin & PapersLimied
DSP Black Rck trsee Limied
) mr. Ba s. mehtaMr. Meha is a gradae incmmerce and a Fellw he Insie ChareredAccnans India. Mr.Meha is an accnan inpracice dealing wih axain,accnanc and valain mergers and acqisiins. Heis a direcr n he bards several prminen cmpanies in
India. He has been a direcr he Cmpan since 1996.
other drectrhp
Al Limied
Bhara Bijlee Limied
Cenr Enka Limied
Clarian Chemicals (India)Limied
Gillee India Limied
Hsing Develpmen FinanceCrprain Limied
IL & FS Invesmen ManagersLimied
J. B. Chemicals andPharmaceicals Limied
Nainal Secriies DepsirLimied
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Pidilie Indsries Limied
Prcr & Gamble Hgiene andHealh Care Limied
Sasken Cmmnicaintechnlgies Limied
SBI Capial Markes Limied
Sdarshan Chemical IndsriesLimied
udhe India Limied (AlernaeDirecr)
meber/Chara the llg Cttee
n C n C mb/C
Gillee India Limied Adi Member
Hsing Develpmen Finance Crprain Limied Adi Member
Al Limied Adi Member
Cenr Enka Limied Adi Member
Prcr & Gamble Hgiene and Healh Care Limied Adi Member
IL & FS Invesmen Managers Limied Adi Chairman
J. B. Chemicals & Pharmaceicals Limied Adi Chairman
Sdarshan Chemicals Limied Adi Chairman
Sasken Cmmnicain technlgies Limied Adi Chairman
Pidilie Indsries Limied Adi Chairman
v) mr. Va Baal
Mr. Bansal an IAS cer 1969Bach (Maharashra Cadre),reired as Secrear in heDeparmen Chemicals in heGvernmen India.
Bere ha, he served asAddiinal Secrear Cmmerce,Gvernmen India, Chairman,MSEB, Principal Secrear
Indsries and PrincipalSecrear Chie Miniser,Maharashra.
He has represened heGvernmen India in JinCmmissins severalcnries and negiaed heCmprehensive EcnmicCperain Agreemenbeween Gvernmen Indiaand Singapre. Crrenl, he
is wrking as cnslan inReliance Indsries Limied.
Mr. Bansal hlds a Masersdegree in Mahemaics rmhe universi Allahabad,a Diplma in PerlemManagemen rm ArhrDLile, MDI, Bsn in uSand als Diplmas in BsinessAdminisrain and French.
other drectrhpRewas Prs Limied
Navi Mmbai SEZ PrivaeLimied
Mr. Bansal is n a Chairmanr Member an Adir Sharehlders/InvesrsGrievance Cmmiee.
iii Committees o the Board
1. AudiT CommiTTEE
the erms reerence Adi Cmmiee inclde hemaers specied nder Clase49 (II) (D) and (E) he LisingAgreemen as well as in Secin292A he Cmpanies Ac,1956. the erms reerence he Adi Cmmiee, iner alia,inclde he llwing:
1) oversigh he Cmpansnancial repring prcess andhe disclsre is nancialinrmain ensre ha henancial saemens are crrec,scien and credible.
2) Reviewing wih hemanagemen he nancialsaemens a he end heqarer, hal ear and he annalsaemens bere sbmissin
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he Bard r apprval wihpariclar reerence :
a) Maers reqired be incldedin he Direcrs RespnsibiliSaemen which rms par he Bards Repr in erms Clase (2AA) Secin 217 he Cmpanies Ac, 1956.
b) Changes, i an, in accningplicies and pracices andreasns r he same.
c) Majr accning plicies and
pracices and reasns r hesame.
d) Signican adjsmens madein he nancial saemensarising adi ndings.
e) Cmpliance wih he lisingand her legal reqiremensrelaing nancial saemens.
) Disclsre an relaed parransacin.
g) Qalicains, in he dra adirepr.
3) Cnsidering and recmmendinghe appinmen, re-
appinmen, he saradirs, xain headi ee and ee r anher services rendered bhe Sar Adirs andi reqired, he replacemenr remval he SarAdir.
4. Reviewing wih hemanagemen, perrmance he Sar and InernalAdirs and adeqac heinernal cnrl ssems.
5. Reviewing he adeqac he inernal adi ncin, ian, inclding he srcre he inernal adi deparmen,sang and seniri hecial heading he deparmenrepring srcre cverageand reqenc he inernaladi.
6. Discssin wih inernaladirs, an signicanndings and llw p heren.
7. Reviewing he ndings aninernal invesigains b heinernal adirs in maers
where here is sspeced radr irreglari r a ailre inernal cnrl ssems amaerial nare and repringhe maer he Bard.
8. Lking in he reasns rsbsanial deals in pamen he depsirs, debenrehlders, sharehlders andcredirs, i an.
the Cmpan has cmpliedwih he reqiremens
Clase 49 (II) (A) as regardshe cmpsiin heAdi Cmmiee. the Adicmmiee has hree (3)members; Mr. Hari L. Mndra,Mr. S. Dreswam, Mr. MaheshS. Gpa. Mr. Mndra ishe Chairman he AdiCmmiee.
Dring he nancial earended March 31, 2011, r(4) meeings he AdiCmmiee were held n April
29, 2010, Jl 26, 2010, ocber20, 2010 and Janar 25, 2011.
Atteace at the At Cttee meetg
n mb n. mg
Mr. Hari L. Mndra 4
Mr. S. Dreswam 4
Mr. Mahesh S. Gpa 4
Fll qrm was presen a he meeings.
the Adi Cmmiee Meeings are als generall aended b he represenaives Sar Adirs and InernalAdirs, he Managing Direcr, he Dep Managing Direcr, he Chie Financial ocer, Head-Inernal Adi and heGeneral Manager-Accns.
the Cmpan Secrear ncins as he Secrear he Cmmiee.
the mines he meeings he Adi Cmmiee are discssed and aken ne b he Bard direcrs.
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2. sHAREHoLdERs/inVEsToRs GRiEVAnCE CommiTTEE
the Cmmiee reviews and deals wih cmplains and qeries received rm he invesrs. I als reviews and deals wihrespnses leers received rm he Minisr Crprae Aairs, he Sck Exchanges and Secriies and ExchangeBard India (SEBI).
the Sharehlders/Invesrs Grievance Cmmiee cmprises hree (3) members, Mr. Mahesh S. Gpa, Mr. S.Dreswam and Mr. Paras K. Chwdhar. Mr. Gpa is he Chairman he Cmmiee.
the Cmpan Secrear ncins as he Secrear he Cmmiee.
Dring he nancial ear ended March 31, 2011, r (4) meeings he Sharehlders/Invesrs Grievance Cmmieewere held n April 29, 2010, Jl 27, 2010, ocber 20, 2010 and Janar 25, 2011.
Atteace at sharehler/ivetr Grevace Cttee meetg
n mb n. mg
Mr. Mahesh S. Gpa 4
Mr. S. Dreswam 4
Mr. Paras K. Chwdhar 4
the sas he cmplains received rm invesrs is as llws
sharehler/ivetr Cplat
s/i C C n.
Cmplains as n April 1, 2010 0
Cmplains received dring 2010-11 7
Cmplains idenied and repred nder Clase 41 he Lising Agreemen 7
Cmplains dispsed dring he ear ended March 31, 2011 7
Cmplains remaining nreslved as n March 31, 2011 0
the Bard has designaed Mr. H. N. Singh Rajp, Cmpan Secrear, as he Cmpliance ocer.
3. REmunERATion CommiTTEEthe Remnerain Cmmiee reviews he remnerain package r he Managing Direcr/Dep Managing Direcrand recmmends i he Bard. the Cmmiee als reviews he Cmmissin paable he Nn-Execive Direcrsand recmmends i he Bard.
the Remnerain Cmmiee cmprises r (4) members, Mr. H. V. Genka, Mr. S. Dreswam, Mr. Hari L. Mndraand Mr. Mahesh S. Gpa. Mr. Genka is he Chairman he Remnerain Cmmiee. this Cmmiee mees hecrieria laid dwn in explanain IV Secin II Par II Schedle XIII he Cmpanies Ac, 1956 and is n rmedprsan Clase 49 he Lising Agreemen, where he rmain he Cmmiee is n mandar.
Dring he nancial ear ended March 31, 2011, hree (3) meeings he Cmmiee were held n April 29, 2010, ocber20, 2010 and Janar 12, 2011.
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nber meetg attete b the meber
n mb n. mg
Mr. H. V. Genka 2
Mr. S. Dreswam 3
Mr. Hari L. Mndra 3
Mr. Mahesh S. Gpa 3
Reerat Plc
Pamen remnerain he Managing Direcr/Dep Managing Direcr is gverned b he Agreemens eneredbeween hem and he Cmpan as apprved b he Bard Direcrs and he sharehlders in erms applicableprvisins he Cmpanies Ac, 1956.
the remnerain srcre Mr. Paras K. Chwdhar, Managing Direcr and Mr. Anan Vardhan Genka, DepManaging Direcr, cmprises salar, perqisies and allwances, cnribins prviden nd, sperannain andgrai.
Dring he ear nder review, apar rm he Siing Fees paid r aending he meeings he Bard and heCmmiees, he Nn-Execive Direcrs have been paid a Cmmissin in recgniin heir services he Bard Direcrs. the said Cmmissin was dl recmmended b he Remnerain Cmmiee and apprved b he Bard Direcrs. the Sharehlders have vide heir Special Reslin passed n Jl 25, 2008 apprved he pamen heCmmissin.
drectr Reerat
n-Eectve drectr
dcr w
dc ( )
sg g 2010-11
(a fg `)
C p n-excdc 2009-10
(a fg `)
Dr. R. P. Genka, Chairman Faher Mr. H. V. Genka - 2,00,000
Mr. H. V. Genka, Vice-Chairman* Sn Dr. R. P. Genka 1,10,000 1,82,00,000
Mr. Mahesh S. Gpa* - 1,55,000 2,00,000
Mr. A. C. Chkse - 80,000 2,00,000
Mr